Motorcycle Holdings (MTO) H1 2025 earnings summary

Executive summary

• Revenue grew 12% year-over-year to $328 million, with net profit after tax up 43% to $9.45 million, driven by diversification, operational improvements, and disciplined execution.

• Outperformed the new vehicle market, gained market share, and set a record for used vehicle unit sales.

• New leadership team focused on sustaining growth and capitalizing on emerging opportunities, including a successful CEO transition and COO appointment.

• Focused on operational efficiency, inventory reduction, and significant net debt reduction.

Financial highlights

• Sales revenue increased 12% year-over-year to $328 million; operating profit rose 10% to $82.8 million.

• Underlying EBITDA up 20% to $26.25 million; EBITDA margin improved to 8.0% from 7.4%.

• Net profit after tax up 43% to $9.45 million; basic EPS up 44% to 12.8 cents.

• Interim dividend of 8 cents per share, fully franked, up from 3 cents in 1H24, payable 27 March 2025.

• Net bank debt reduced by 36% to $24.23 million; cash on hand increased to $20.8 million.

Outlook and guidance

• Cautiously optimistic for a positive second half, with continued focus on cost management, digital capabilities, and debt reduction.

• Targeting further growth in used vehicles, e-commerce, and used motorcycles, with ongoing efforts to maintain margins.

• OpEx expected to remain flat in the second half; more detailed guidance for FY2026 and beyond to be provided at year-end.

• No significant subsequent events expected to affect future operations.